It seems like the I.T industry could be next to take a battering. Both hardware manufacturers and software developers are beginning to feel the crunch.
Orcale shares slump on revenues
Hewlett-Packard shares fall with Wall St
It seems like everyone I talk to has jumped on the I.T gravy train and works as a DBA , programmer or is in networking etc etc and are earning up to £100k per year which is serious money. However with the 'downturn' affecting shares prices of the worlds 3rd largest software developer as early as March it looks like things may get very bleak over the coming months in the I.T sector, due to increasing layoffs as employers look to save money which will result in a huge oversupply of workers. This in turn will lead to wage deflation and a bursting of the wage bubble in this industry which was inflated mostly by demand in the financial services sector which is now imploding.
PeakOil is You
Information Technology Sector next to be hit?
Information Technology Sector next to be hit?
by EndOfGrowth » Mon 27 Oct 2008, 06:27:05
Machines are what distinguish modern man from the savage.
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Re: Information Technology Sector next to be hit?
by Jotapay » Mon 27 Oct 2008, 08:08:13
I work in IT. I'm a DBA, applications developer, and sysadmin. I used to work for one of the best finance companies in the USA, but their share price is now under $6, lol. The company is like a morgue now. They may be DOA. I'm glad I left when I did. The programmers with whom I worked there still have their jobs and they will be the last ones to leave due to the importance of the systems that they manage.
I now work at an multi-national electronics manufacturing company. Since they are so large and can fund their own operations to a large extent, their strategy seems to be to take advantage of their rivals during this downturn by driving them out of business. So far it seems to be working. But there is a major cost-savings initiative and there is a general hiring freeze right now.
In my city, there is still a lot of hiring in IT, but my state is also one of the few in the USA that is still expanding economically. I still get a call from a headhunter at least once a week. Salaries that I see run the range from $35,000 USD to $110,000 USD. I'm tempted to try and find work at an oil company in Texas or Oklahoma, because they will most likely have the most consistent future for the rest of my working career.
The IT industry is going to take a hit for sure, but there will still be jobs out there. The downturn in IT will be largely regional and hit affected industries (finance, etc.) more severely.
I now work at an multi-national electronics manufacturing company. Since they are so large and can fund their own operations to a large extent, their strategy seems to be to take advantage of their rivals during this downturn by driving them out of business. So far it seems to be working. But there is a major cost-savings initiative and there is a general hiring freeze right now.
In my city, there is still a lot of hiring in IT, but my state is also one of the few in the USA that is still expanding economically. I still get a call from a headhunter at least once a week. Salaries that I see run the range from $35,000 USD to $110,000 USD. I'm tempted to try and find work at an oil company in Texas or Oklahoma, because they will most likely have the most consistent future for the rest of my working career.
The IT industry is going to take a hit for sure, but there will still be jobs out there. The downturn in IT will be largely regional and hit affected industries (finance, etc.) more severely.
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Re: Information Technology Sector next to be hit?
by cube » Mon 27 Oct 2008, 08:08:45
I wonder what the internet would look like if IT companies had to operate like normal businesses back in the old days meaning they had to survive purely based on profits and could NOT use the stock market as a source of funding.
hmm lets just call it web 3.0
hmm lets just call it web 3.0
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Re: Information Technology Sector next to be hit?
by mos6507 » Mon 27 Oct 2008, 08:50:32
$this->bbcode_second_pass_quote('cube', 'I') wonder what the internet would look like if IT companies had to operate like normal businesses back in the old days meaning they had to survive purely based on profits and could NOT use the stock market as a source of funding.
hmm lets just call it web 3.0
hmm lets just call it web 3.0
The dotcom I work for is private and is profitable. They are out there, although they tend to be less glamorous than the startups with delusions of grandeur.
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Re: Information Technology Sector next to be hit?
by jasonraymondson » Mon 27 Oct 2008, 08:52:13
$this->bbcode_second_pass_quote('cube', 'I') wonder what the internet would look like if IT companies had to operate like normal businesses back in the old days meaning they had to survive purely based on profits and could NOT use the stock market as a source of funding.
hmm lets just call it web 3.0
hmm lets just call it web 3.0
Actually if that were the case, we would be looking at web 0.3 Alpha Release Candidate
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Re: Information Technology Sector next to be hit?
by cube » Mon 27 Oct 2008, 09:17:17
$this->bbcode_second_pass_quote('mos6507', '')$this->bbcode_second_pass_quote('cube', 'I') wonder what the internet would look like if IT companies had to operate like normal businesses back in the old days meaning they had to survive purely based on profits and could NOT use the stock market as a source of funding. hmm lets just call it web 3.0
The dotcom I work for is private and is profitable. They are out there, although they tend to be less glamorous than the startups with delusions of grandeur.
free email
free blogging
free webspace
I keep on getting this paranoid feeling that selling advertising alone doesn't pay the bills --> it must be the stock market.
Take a look at youtube.com my gosh their bandwidth requirements must be outrageous.
Therefore web 3.0 will be an internet filled with "web services" that must be paid for and not given away for "free". I guess I'm going to find out if my prediction is right in about a couple years.
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